set_shock_distr_par: Setting distribution parameters of model shocks

In gEcon: General Equilibrium Economic Modelling Language and Solution Framework (gEcon)

Description

The set_shock_distr_par function sets distribution parameters (standard deviations, correlations, etc.) of shocks in an object of gecon_model class.

Usage

set_shock_distr_par(model, distr_par)

Arguments

model	an object of gecon_model class.
distr_par	a list or a vector of distribution parameters with named elements.

Details

By default, gEcon uses an identity matrix as the covariance matrix of shocks. Valid parameters' names should match any of the following patterns:

"sd( SHOCK_NAME )"

"var( SHOCK_NAME )"

"cov( SHOCK_NAME_1, SHOCK_NAME_2 )"

"cor( SHOCK_NAME_1, SHOCK_NAME_2 )"

There are two issues which the user should be careful about while using the set_shock_distr_par function. First, in contrast to other parameters, shock distribution parameters require quotation marks to be assigned properly. If quotation marks are omitted, R parser treats elements of the distr_par list or vector as functions and attempts to evaluate them, producing errors. Second, parameters passed to the distr_par argument should not be specified twice.

Value

An (updated) object of the gecon_model class representing the model.

Examples

# copy the example to the current working directory
file.copy(from = file.path(system.file("examples", package = "gEcon"),
          "home_production.gcn"), to = getwd())

# make and load the model
home_production <- make_model("home_production.gcn")
shock_info(home_production, all = TRUE)

# set the shock distribution parameters
home_production <- set_shock_distr_par(home_production,
                                       distr_par = list("sd(epsilon_h)" = 0.7,
                                                        "var(epsilon_m)" = 0.49,
                                                        "cor(epsilon_m,
                                                             epsilon_h)" = 2/3))
# get information about shocks in the model
shock_info(home_production, all = TRUE)

gEcon documentation built on May 2, 2019, 6:52 p.m.